This is an office consolidation and not an
official version of this Act or Regulation. While care has been taken in assembling this
document, it is not warranted to be true and accurate. Official copies of all Provincial
Acts and Regulations are available from Island
Information Service.

2. A net-metering system agreement entered into under
section 11 of the Act shall contain and is deemed to contain the conditions
set out in Schedule A.

No tapping of distribution facilities

3. No SCRE generator shall use the distribution
facilities of a public utility to transmit electrical energy to the load of
the SCRE generator.

Commencement

4. These regulations come into force on December 31,
2005.

SCHEDULE A

CONDITIONS APPLICABLE TO A NET-METERING SYSTEM

AGREEMENT MADE UNDER SECTION 11 OF THE ACT

1. Compliance

The parties to a net-metering
agreement shall ensure that the generating and interconnection systems
between them are compliant with the practices, methods and equipment, as
changed from time to time, that are commonly accepted practice in electrical
engineering operations to operate electric equipment lawfully and with
safety and dependability and that such systems comply with the Electrical
Inspection Act R.S.P.E.I. 1988, Cap. E-3, the latest authorized edition
of the Canadian Electrical Code and generally accepted electrical utility
practice.

2. Installation of the Disconnect

The design, installation, operation
and maintenance of the SCRE generator's facility shall include appropriate
control and protection equipment and a manual load-break disconnect device
lockable in the open position and accessible by the public utility as a
means of electrically isolating the SCRE generator's system from the public
utility's system, and to establish working clearance for maintenance and
repair work in accordance with accepted electrical practice. The loadbreak
disconnect device shall be furnished and installed by the SCRE generator and
is to be connected between the SCRE generator's system and the public
utility's distribution system. The disconnect device shall be located in the
immediate vicinity of the electric meters serving the SCRE generator, but
with the permission of the public utility, the disconnect may be located at
an alternative location which is accessible to the public utility's
personnel on a 24-hour basis. The disconnect device shall be clearly
labelled "Net-Metering System Disconnect". Upon reasonable notice to the
SCRE generator, the public utility shall have the right to inspect the small
capacity renewable energy generating system.

3. Notice

A SCRE generator shall provide the
public utility with an advance written notice of thirty (30) days of any
proposed material changes to the small capacity renewable energy system,
including any change in ownership or any increase in electrical capacity. If
the ownership of a SCRE generator changes, the public utility may require
the new owner to have the system re-inspected.

4. Permits and Licenses

The SCRE
generator shall obtain, at its expense, any and all authorizations, permits
and licenses required for the construction and operation of its small
capacity renewable energy generating system.

5.
Metering

The public utility shall supply, own,
maintain and read all necessary meters utilized for billing. The SCRE
generator shall supply, at no expense to the public utility, a suitable
location for meters utilized for billing.

6. Indemnification

Each party as indemnitor shall hold
harmless and indemnify the other party and the directors, officers,
authorized agents, and employees of such other party against and from any
and all loss and liability for injuries to persons including employees and
authorized agents of either party, and damages, including property of either
party, resulting from or arising out of (i) the engineering, design,
construction, maintenance, or operation of, or (ii) the making of
replacements, additions, or betterments to the indemnitor's facilities which
are required for the interconnection and parallel operation of the SCRE
generator's system with the public utility's distribution system and the
generation of energy by the SCRE generator. Neither party shall be
indemnified for liability or loss resulting from its sole negligence or
wilful misconduct. Nothing in this agreement shall create any duty to, any
standard of care with reference to, or any liability to any person not a
party to it.

7. Continuity of Service

The public utility may require the
SCRE generator to temporarily curtail, interrupt or reduce deliveries of
electrical energy: (a) when necessary in order for the public utility to
construct, install, maintain, repair, replace, remove, investigate or
inspect any of its equipment or any part of its system; or (b) if the public
utility determines that such curtailment, interruption or reduction is
necessary because of a system emergency, forced outage, or compliance with
accepted electrical practice. A SCRE generator shall not be entitled to any
priority for restoration of service after a power outage.

8. Additional Equipment

The public utility is not required to
install any additional distribution equipment for a SCRE generator that
would not normally be afforded to other customers in a similar rate class
and a similar location. If the SCRE generator requests any such
additional distribution equipment to be installed, the full cost of these
additions shall be at the expense of the SCRE generator.

9. Personnel and System Safety

If at any time the public utility
determines that the continued operation of the small capacity renewable
energy generation system may endanger any person or property or the public
utility's distribution system, or have an adverse effect on the safety or
power quality of other customers of the public utility, the public utility
shall have the right to disconnect the SCRE generator's system from the
public utility's distribution system. The SCRE generator's system shall
remain disconnected until such time as the public utility is satisfied that
the endangering or power quality conditions have been corrected, and the
public utility shall not be obligated to accept any electrical energy from
the SCRE generator during such period. The public utility shall not be
liable directly or indirectly for permitting or continuing to allow an
attachment of a small capacity renewable energy generation system or for the
acts or omissions of the SCRE generator that causes loss or injury,
including death, to any third party. It is the responsibility of the SCRE
generator to protect its system from voltage imbalances within the public
utility's distribution system or reclosing operations after a power
interruption.

10.
Power Factor

The SCRE generator shall ensure that
its system operates at a power factor of at least 0.90; in the event that
the SCRE generator does not operate at this power factor, the net-metering
agreement may be immediately declared void by the public utility.

11. Additional Information

The public utility reserves the right
to require additional information, where necessary, to serve the SCRE
generator.

12. Termination of Agreement

The SCRE generator may terminate a
net-metering agreement at any time by giving written notice to the public
utility that specifies the date of termination. The public utility may
terminate a net-metering agreement at any time if the SCRE generator
violates the Renewable Energy Actor regulations made under the
Act.